Northern exposure

Incapable of resuscitating Atlantic City, Trenton is moving to euthanize it by legalizing casinos in North Jersey. It's a bad move for the state and especially for Atlantic City, whose dire condition is Exhibit A in the case against relying on gambling for an economic revival.

Atlantic City saw four of its 12 casinos close last year. Though the downward trend was apparent for years as the city struggled with competition from casinos in Pennsylvania and other nearby states, officials were slow to take steps to diversify the resort's economy.

Now the greatest immediate threat to Atlantic City is from within the state. With Gov. Christie's blessing, the Legislature's majority Democrats are pushing a bill to ask voters to amend the state constitution to allow casinos in North Jersey. The vote could come as early as November, depending on political concerns that have little to do with the needs of the Atlantic City region. State Senate President Stephen Sweeney (D., Gloucester) wants the ballot question delayed until next year; he and his fellow South Jersey Democrats are reportedly worried that a vote this fall, when state Assembly members are up for election, could cost them seats in the Atlantic City area.

Watching casinos in Yonkers and Queens, N.Y., attract hordes from North Jersey, Democrats there are arguing that the state must act immediately to capture more gambling money. What is lost in the political argument is the fact that the state is considering more casinos because it has failed to responsibly manage its finances for years. Grasping at casino revenue is a lot easier for politicians than truly balancing the state's budget - as the rating agencies have noticed, having downgraded the state's creditworthiness a record nine times during the Christie administration. Last week, the state Supreme Court gave Christie permission to do more fiscal damage by shorting the pension fund.

Meanwhile, instead of investing in education and transportation - key factors in business development and diversity - the Christie administration has tossed $5 billion in tax breaks at companies despite the lack of evidence that this promotes economic development. The liberal think tank New Jersey Policy Perspective has rightly called for more disclosure before more subsidies are doled out.

The North Jersey casino panic is leading to the same sort of poorly considered policy. Approving more casinos may put off the eventual reckoning of repairing state finances, but it won't cover up the underlying mismanagement.

Instead of arguing about when to ask voters to approve more casinos, Sweeney should be urging his colleagues to abandon the idea altogether. Atlantic City and New Jersey need more than gimmicks and giveaways.